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Bitcoin (BTC) fell to $94,500 yesterday after Microsoft shareholders decisively rejected a proposal by the Bitcoin treasury to allocate 1% of the company’s total assets to purchase BTC as a hedge against inflation. However, analysts are still confident of further BTC price appreciation.
Bitcoin may rise up to $275,000
According data From Coinglass, more than $478 million worth of contracts (mainly long positions) were liquidated in the last 24 hours following the decline of BTC and other cryptocurrencies. Interestingly, liquidation volumes were higher in altcoins compared to Bitcoin.
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However, some analysts see this price drop as a buying opportunity. Experienced crypto analyst Ali Martinez took X to stand out A long cup and handle pattern forms on the weekly Bitcoin chart.
For those unfamiliar, the cup and handle pattern is a bullish technical formation that resembles a rounded “cup” followed by a brief period of consolidation or “handle.” It usually indicates the possibility of a continuation of an uptrend, often leading to significant price gains.
MartÃnez noted that the pattern suggests that Bitcoin could rise as high as $275,000, depending on its technical structure. However, he also urged traders to exercise caution and avoid excessive leverage on their positions.
On the other hand, prominent crypto analyst @Trader_XO warned that Bitcoin must maintain its support at $90,000 to avoid further declines. If BTC loses this critical level, it could fall as low as $85,000. On the contrary, staying above $90,000 would allow the cryptocurrency to recover and resume its uptrend.
BTC takes another hit to surpass $100,000
Despite yesterday’s drop, Bitcoin quickly recovered, trading near $100,000 at the time of writing. The flagship cryptocurrency has remained in an overall uptrend, likely driven by the current US inflation. data November, which largely aligned with market expectations.
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Bitcoin recently hit a new all-time high (ATH) of $103,679, according to data from CoinGecko. However, its price has fluctuated above and below the crucial $100,000 mark, leading to more than $1.5 billion in liquidations in the past week.
Several factors could drive Bitcoin price to a new ATH. For example, BTC reserves on cryptocurrency exchanges have hit multi-year lows, reflecting growing demand for the digital asset.
American financier and former investment banker Anthony Scaramucci recently provided China could establish its own Bitcoin reserve if the US product with their strategic Bitcoin reserve plans. Domestic BTC reserves are expected to reinforce the Bitcoin supply shortage narrative, which could drive prices higher.
At the same time, BTC adoption among corporations continues to increase, as shown by Canadian video sharing company Rumble. become the latest company to introduce a BTC treasury strategy. BTC is trading at $100,453 at press time, up 4.1% in the last 24 hours.
Featured image from Unsplash, X Charts and TradingView.com
